A commercial lease renewal negotiation should start 12 to 18 months before your lease expires, earlier for large spaces or heavy build-outs. That window gives you time to test the market, compare a real alternative and still meet any renewal option notice deadline. Tenants who start inside 6 months usually renew at the landlord's number.

Why timing decides the deal

A landlord's best outcome is a tenant with no time to move. Moving a business takes months: finding space, negotiating, permits, build-out and the move itself. Once you're inside that window, the landlord knows staying is your only practical option.

The reverse is also true. With 18 months left, you can credibly walk. Your landlord then weighs your request against the cost of vacancy, a new tenant's allowance, broker fees and months of downtime. That math usually favors keeping you.

Here's how to use the time.

Your renewal timeline, stage by stage

18 months out: read your lease and set your needs

Pull the lease and every amendment. Find three things:

  • The renewal option, if you have one: how many terms, how long, and how rent is set
  • The notice window, the dates between which you must exercise the option in writing
  • Holdover terms, what you'll pay if you stay past expiration without a new deal

Many option clauses require notice somewhere between 6 and 12 months before expiration, but yours may differ. Miss the window and the option can lapse entirely.

Then decide what you actually need. More space, less space, a different layout, a better location? Write it down now, before you're emotionally invested in staying.

12 to 15 months out: test the market

Find out what comparable space rents for today. Talk to a tenant rep broker, look at recent leases in your area, and tour two or three real alternatives. Our explainer on what a tenant rep broker does covers how that relationship works and who pays.

Market conditions vary sharply by property type. In Q2 2026, national office vacancy sat at 20.1% according to Cushman & Wakefield, while CBRE put retail availability at 4.9%. An office tenant in a soft market has room to push. A retail tenant in a tight center may not.

9 to 12 months out: open the conversation

Approach the landlord with a specific proposal, not a request for their number. Include:

  • The term you want and the rent you'll pay, backed by your market research
  • Concessions: free rent, a refurbishment allowance, or both
  • Fixes to clauses that hurt you last time, such as uncapped CAM charges or a tight assignment clause

Renewal tenants often get smaller concessions than new tenants, even though they're cheaper for the landlord to keep. Ask anyway. A landlord avoids downtime and new build-out costs by renewing you, and that saving is your best argument.

6 to 9 months out: decide and exercise

By now you should have the landlord's response and at least one credible alternative. Compare the full cost of staying with the full cost of moving, including build-out, downtime and moving costs.

If you're using a renewal option, exercise it in writing, following the notice clause exactly. Send it the way the lease specifies, to the address it names. If you're negotiating a new deal instead, ask for a short written extension of the notice deadline so your option doesn't lapse while you talk.

3 to 6 months out: sign

Get the renewal amendment drafted, reviewed and signed. Check it against your agreed terms line by line. Then plan any refurbishment work so it doesn't disrupt operations.

What to do if you're already late

Inside six months, your options shrink but don't disappear. Ask the landlord for a short-term extension, such as 6 or 12 months, at current rent while you negotiate. It costs them little and buys you time to look. Check your holdover clause first, because staying past expiration without a signed deal can trigger rent well above your current rate.

If the landlord won't extend, focus on the terms that cost the least to give: a refurbishment allowance, a cap on CAM, or a better assignment clause. Rent is the hardest number to move late. Everything else is still open.

Our view: the single biggest mistake in renewals is treating them as paperwork. A renewal is a new lease negotiation, and it deserves the same preparation as the original deal.

A real alternative is your strongest card

You can't negotiate well without a real option to leave. Waltre lets you post your requirement and hear from verified landlords and brokers with matching space. Stealth Mode keeps the search private, so your current landlord doesn't see you looking until you choose to tell them.

Start at 18 months. Not 6.

Frequently Asked Questions

How early should I start a commercial lease renewal?

Start 12 to 18 months before expiration. That gives you time to test the market, tour alternatives and meet your renewal option notice deadline without being rushed.

What happens if I miss my renewal option deadline?

The option may lapse, leaving you to negotiate a new lease with no contractual right to renew. Some landlords will still negotiate, but you lose the protection the option gave you.

Can I negotiate a lower rent at renewal?

Yes, especially if comparable space is renting for less or vacancy is high in your market. Back your ask with recent comparable deals and a credible alternative space.

What is holdover rent?

Holdover rent is what you pay if you stay after your lease expires without a renewal. Many leases set it well above the last rent, so check the clause before letting a deadline pass.

Do renewing tenants get concessions?

Often, though usually smaller than for new tenants. Free rent and refurbishment allowances are common asks, because renewing you saves the landlord vacancy and new build-out costs.